Introduction to Business Organizations Chapter 1 Introduction Business

Introduction to Business Organizations Chapter 1

Introduction • Business is vital to the economic health of all nations. • Businesses can be as simple as a sole proprietorship or as complex as a multinational corporation.

Overview of Business Organizational Models • A sole proprietorship is a business that is owned and run by a single individual. It is one of the simplest business forms to create and dissolve.

Partnerships • A partnership consists of two or more people working together in a joint business venture.

Limited Partnerships • A limited partnership combines the basics of a typical partnership with the concept of limited liability.

Limited Liability Companies • A limited liability company (LLC) is a cross between a partnership and a corporation, owned by members who may manage the company directly or delegate to officers and managers who are similar to a corporation’s directors.

Corporations • A corporation is much more than another business model. A corporation is considered to be an artificial person.

Professional Corporations • Similar to a limited liability company, professional corporations offer professionals the chance to pool resources and to protect the personal assets of their members.

Forming a Corporation • Creating a corporation requires careful attention to detail and a solid understanding of your state’s laws.

The Role of the Legal Team in Creating a Business • Businesspeople often seek legal advice for many different issues. • As a paralegal in a business firm, you will be called upon to engage in a wide variety of activities to help create a business.

Registering the Company Name • In most states, when a person wishes to name a business something other than his real name, he must apply with the state for a “fictitious name” certification.

Acquiring a Web Site • Part of the service offered by the firm might include registering a “domain name” with the Internet Corporation for Assigned Names and Numbers (ICANN).

Searching for a Trademark • If the client wishes to register a trademark for his company, the firm must conduct a trademark search in order to ensure that no other company has already registered the same or a substantially similar image.

Obtaining Licenses and Permits • New business owners are often ignorant of the many different types of business licenses and permits that are required to run a business.